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tv   Making Money With Charles Payne  FOX Business  January 2, 2015 6:00pm-7:01pm EST

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psychiatric disorders through dr. anthony tobias teaching tool. he created a database from all ithe show's episodes. they'll get a good -- >> i'm dierdre bolton in for charles payne. you're watching "making money." the dow ekes its way into the green. the us backdrop for stocks remains positive. crude oil sold more than 40% last year. if that continues, it should put more money in the pocket of consumers. oil fell again on friday. gold finished higher to break down the big news, we take you to the new york stock exchange. laurie is in for nicole petallides. >> a trifecta or disappointing news. had markets making wild swings today. the dow closed up about ten points.
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the benchmark averages will close lower. oil was volatile as well. ultimately closing lower. while that's been fantastic for consumers, oil prices, are down about 1 dollar on average from this time last year. tough news for some of the oil companies. lynn becomes the latest company to report it's going to cut its 2015 captures and lower its dividends by 15%. they were higher today because the uncertainty for investors was gone. dierdre, with that, i'll send it back to you. dierdre: thank you very much. here to help are investment pros. jim frischling. president of newoak capital. oliver. defensive beta funds. quince green leaf. and matt mccaul. digging into the first real, real. oil trading at a
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discount. cheaper gases. more money could be in consumer's pockets. in theory, could help us businesses. what happens if the rest of the world is weak? so, matt, that question to you first. what does it mean? even if the us is doing great if everyone is suffering can anyone afford to buy our goods. matt: the us dollar is increasing as well. it makes our goods expensive. double whammy. we've seen this coming. we knew china was due for a soft or hard landing. a lot of it has been priced into the market. the us stock market has been able to hit highs. we've been talking about us centric companies. that's the best asset class as far as going forward in 2015. when the us dollar going higher, it will help the companies based here. that's where you want to be. i still believe the us will be the best market
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going forward 2015 regardless what happens in china. >> we'll remain the cleanest dirty shirt in the pile. >> europe is a big beneficiary of oil prices as well. they've been teetering on recession. the drop in oil prices is having a big boost in those countries. that's going to be a big plus. rio could be the big surprise in 2016. oil prices lower are not good for the u.s. if you're in texas that is heavy on oil production and california, the dakotas, those drops in oil prices will shut down new production and could impact job growth and capex. that's a danger. dierdre: great point about this double-edged sword. it's been boom time as people believe in america's energy independence. a lot of building has
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gone into this industry. >> so much success in texas. dallas and houston, austin. a lot of that is fracking driven. we will have low oil. from texas point of view, we don't want to see it too low for too long. but long-term, i think it will be back up at a healthy level. much longer, we'll see trouble. >> does it slow down investments. people might say, hey, we don't need to do fracking. we don't need to worry about this independence because it's so cheap. >> you made a good point. we're a consumer driven economy. the first wave is a huge benefit. we've seen it throughout the holidays. as oliver pointed out. certain states. geopolitical risks. their dependence on oil is overwhelming. when people ask me what could go wrong or derail this market? i'm not putting a high probability, as oil which has not found a bottom. only partially a demand
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issue. mostly a supply issue. we'll see this play out. i'm not ready to call the bottom any time soon. >> are you saying if they're so kicked down in the gutter, they'll become more aggressive militarily. >> i think complicates initially in their own countries, and what happens in their neighboring countries. the three i've mentioned, this is nearly a breaking point for them, where oil is headed. the saudis are trying to flush out people in the u.s. they're trying to flush out their direct competition, and they can afford to do it, where the other countries cannot. >> just to add that, it takes about six months for lower oil prices to start impacting the economy. first half of 2015, probably pretty good as a result of these oil prices. if they stay low, second half of 2015 could become tricky. dierdre: we want to stay on this theme. a separate real, real deal. we want to bring you
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stats. it was down 46% last year. you brought this up. what's the right price for oil for the us economy? >> in texas, we love to say at about 200 bucks a barrel. dierdre: texas is part of the us. right? >> right. i think 80 is probably a great number for texas. even 70, a lot of people can make money. if we're wondering if we'll get to 40, that's where the concern comes. >> i actually do think low prices will help stabilize oil because at a certain point it becomes uneconomical to drill and to -- you're better off leaving it in the ground. that will curb -- dierdre: i like what you said about russia. putin basically fired his whole economic team who told him, listen, you cannot price oil at $100 a barrel. he said, okay, you're fired. >> i guess -- don't disagree with --
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matt: this is a simple supply and demand. supply increased. iraq, russia, highest amount of output in over three decades. us highest output in three years. you have the china number coming out getting worse. the eurozone getting worse. that's pretty simple. demand will be dropping. where do prices go? prices will go down with that. jim mentioned this earlier, until prices get to a certain level, supply decreases, then demand goes up. dierdre: one bizarre thing, the weakest part of the market consumer discretionary. also because oil has been beaten down 46%. we're used to this idea of lower oil. >> i can't say that's all that surprising. from a psycho perspective. you look at where the spending has been. the spending in consumer discretionary was strong during the christmas and holiday season. it doesn't translate necessarily into stock price. it's a forward looking
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mechanism. as the markets typically do, they see those danger zones. and they're being a little cautious. and consumer discretionary and some of the higher beta funds out there are going to be more susceptible to pullbacks as a result. matt: retail was down. i think it's a simple profit taking. a lot of the sectors did well running into it. i own a lot of retailers. i'll be selling in the next couple of weeks. you see this run up. if the numbers don't exceed expectations which were high, we could see a nice profit taking in that sector. dierdre: we're mentioning this play. apple is the world's most valuable company. so market counted more than 30 times than exxonmobil. second largest investors weighing what they think of apple's watch. fred wilson, mar marc andreessen misquoted
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saying the watch would be a failure. wilson posted it's annoying that supposedly media outlets reported that i said the apple watch will be a flop. another quote, the apple will not be the product that the ipad and iphone has been. oliver, i know you're a fan of apple. you own it. full disclosure. >> we own apple. we'll continue to own it. nobody should be surprised that the iwatch won't be as big as the ipod. i think we need to step back. i understand their frustrations from a corporate perspective. i think the bigger challenge, the bigger deal is the product launches they're doing. beats music they own. 2015, there will be a huge push with that. the iwatch should do well. ten to 15 million units in the first year. in that range, that's just fine for apple. >> one thing to note,
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remember when the ipad came out, everyone said that's the stupidest name ever. no one will use it. it took about four years to take off. i'm as addicted as anybody. >> timing is everything. the tablet came out six, seven years. completely flopped. toshiba too. >> but there was a starting point. the watch will be a starting point for wearables. more wearables, they can work into beats. something looks like a pin and shoots music to your ear. i don't know. i never thought the watch would be a winner. no sense to have a watch when you could have a phone. i don't think anybody thinks that. why would you sell a stock because of that. if you bought that stock based on the iwatch, you bought it for the wrong reason. >> i'm glad they pulled back from that comment. considering in this environment -- dierdre: he said he didn't say that. >> i'm glad he corrected it. yes, the iwatch won't
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be like the iphone or ipad. it will have a market. wearables, whether on your wrist or in your ear -- dierdre: apple pay. they took these partnerships with these credit card companies. you go through a shop and swipe and you're done. >> technology, we're in an environment where bigger may be better and safer. whether it's a google or a microsoft and clearly an apple, where they can defend their position by buying or acquiring, like with beats, which will be a monster play -- >> he calls anyone in hollywood, that person picks up the phone, that's reason to pay 3 billion. they call it dumb. >> i won't assess the value of that. i agree. dierdre: relationships still count. >> watch the ear pieces take off in 2015. dierdre: what do you make of the idea that if you stick with best of breed stocks, that's the way to go. >> i think it's the only
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way to go. it won't be the watch. i think it looks terrible. it will be the iwatch 4.0 that everyone will want to have. that's the one that apple will be able to buy. they'll be easier to get it than a small player. >> having 4 billion in cash is helpful. dierdre: they have how many millions of itunes credit card numbers already. we're already addicted whether you realize it or not. >> you press on your phone and download the latest song. dierdre: apple obviously on investor's radar screen. yahoo. more than $4 billion of cash to spend. not even counting what's on the balance sheet. it's possible she'll go shopping for a media company. maybe she'll buy a cable network or scribz network. yahoo's stock was beaten
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for years and years. marissa mayer got it a little higher. more or less it didn't change. down a little bit. matt: it's higher because of alibaba. i wouldn't give her that much credit. yahoo is in trouble. going after cnn would be a disaster in my opinion. cnn is going in the wrong way. their ratings are going down. scribz, they'll have to pay above ten billions billion dollars. everyone is moving to online and, you know, mobile media. dierdre: they have this key demographic. they have hgtv, the travel networks. the travel -- some content. >> they have an identity crisis. a lot of zigging and zagging. it will be the year where marissa mayer does a great job or finds
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herself in the unemployment line. it will be that simple. from an investor perspective, that's not the risk we'll take. too many question marks. no clear strategy. the windfall from alibaba, great for them. not a strategy though. >> shareholders will want to -- i think she's looking for a play. give it back. or make a big play. cnn or scribz -- with cnn it's about bundling -- dierdre: or even aol. >> distribution channel. a better chance at being a netflix company if they can go in and out of the cable market. to oliver's point, it's not clear. and i wouldn't -- dierdre: she has her job because there were activist investors to begin with. they installed her after she kicked out scott. >> you live by the sword, you buy it. she's playing the
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content game. nobody really cared about it on the content provider. she has to find good content. whether that's cnn, which i don't think it's there. or find good content elsewhere. matt: she has to do something this year. go big or go home. they're trying to push her to buy aol. i think that's a terrible idea. i can't think of a company that will change things for them. dierdre: there was one proportion that i read about this idea that silver lake basically comes in dismantles most parts and sells it off. >> the two part break off, spinning off the asian operations, their us, but, again, silver lake. i wouldn't bet against it. dierdre: or alibaba buying it to have an official us presence. >> they have a lot of cash to spend. i think they will spend it. matt made a point on hail mary. i think she will throw
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it. >> i didn't think it was the right choice. i didn't enforc enendorse it. dierdre: 2014, the biggest year for ipos since the dot come bubble burst. 2015 could be even bigger. uber. airbnb, spotify. smash burger. dropbox. a lot of companies. (?) clint, just out of curiosity, you know what it's like to build a business and then sell it. there are a lot of private investors, listen, i don't need to go public. so much vc money swirling around. even fidelity willing to invest directly, what do you think of the ipo market. >> i wouldn't touch it with a 10-foot pole. for regulators to come in my house to tell me what do. it's not my thing. i want to stay private. they're throwing a lot of good money after
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pretty weak ideas. dierdre: the only reason to go public is if you want to buy a company overseas and you need a ledge myization of your brand. and you need more capital. >> in 2015, there's so much capital available without going to the ipo market. i wonder if it will be less of a euphoric market than they are expecting. some of the markets are operating illegally in a number of cities, states, and countries. dierdre: you want to cough and say uber? >> even ai airbnb. i get confused on the valuation on these guys. despite operating illegally. >> i think you're right. i will agree. i think 2015 will be a monster year for ipos. not because it's a right or smart thing to do. but it's a word of caution for investors. when multiples expand to that point, that's when
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you get nervous. you want to stick with strong balance sheets and fortify your positions. get the conservative dividends and play it safe. dierdre: on uber and airbnb have had local struggles and facing regulatory pressures and it's unionized -- what do you make of this idea? you think it will be big no matter what? >> because there's so much capital out there, there will be plenty of companies that will be willing to go public and say, fine, i'll deal with the regulators. let's face ca it, if you're an entrepreneur, entrepreneurs they work their butts off for years and years. they build something. they want to monetize something eventually. dierdre: they have to pay their people. >> talent retention. all those things. if you're in the technology space, talent retention is huge. doing it with shares that go public --
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matt: a lot easier to sell your shares when your company is public, not private. great on paper, uber is worth $40 billion. tough to sell that for $40 billion. dierdre: and the talent. even with the people, your dream team, they can't pay their own bills with equity forever. >> there are a number of early investors in these companies. major institutional names. they want their money. dierdre: hero price. fidelity. this isn't a hobby. >> they're not concerned about the long-term regulations. they're selling, they want out. you deal with that. >> the smart money gets out when the ipo goes. matt: there's not a better time to -- you're at an all time in the market, now is the time to go ipo. >> this is a time to step back and not jump in. matt: i wouldn't say that. you have to look at each company individually. you can't say that as a whole.
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dierdre: with that note, on the public markets, if you had stocks last year be you made money. the dow, and the s&p 500 all rose 7%. more reasons investors are looking forward to this year. stick around. we're making more money in three minutes. ♪
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dierdre: there are always bull and bear arguments to be made. but the bull case much stronger last year. 2014, the third straight year that the s&p 500 saw double digital gains. the longest winning streak since the late 1990s.
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matt, you say 2015 poised for even more gains. why? matt: i do. last week we talked about a 10% pullback. that freaked everybody out. my email and phone is blowing up. we have to sell now. no, don't sell now. a potential of a 10% pullback next year -- we haven't one since september 2011, is pretty high. it doesn't mean it's the end of the bull market. it's a healthy pullback. we have pullbacks along the way. everyone things, the bull lies sometimes. the bear lies sometimes. what doesn't lie is numbers. when i'm done with this, you won't want to be selling in the stock market. the best year of the presidential cycle, which is a four-year cycle. prepresidential year. that's next year. since 1939, the average gain of the s&p is 16%. sounds pretty good to me. the prepresidential year has been perfect for the
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last 76 years, not been one prepresidential year that has been down. again, 2015. the fourth year is the charm. over the last 80 years, three times where we've had three consecutive years of double-digit gains. we finished again having the s&p over 10%. the average gain to the s&p 500, 23%. so people say, we've gone too far too fast. no. still a lot of room to move. years ending in five. this is goofy. i'll put it out, this is extremely goofy. the last 130 years, 13 times that years ended in five, average gain for s&p 25%. i don't know if i'm buying in the stock market because it's ending in a five, but these numbers people tell me, you have the bears saying that it will end. the bulls are saying it's great. these numbers don't lie. i don't know how people aren't excited to be in the market. >> that's a pretty good
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argument. what do you think? >> great job, matt. >> i think you can take a step back and forget the digits. i'm bullish in 2015 as well. we have low interest rates. growing economy. the outlook is overwhelmingly positive in 2015. big word of caution, you want to make sure you follow your sectors and do very specific analysis because you'll probably see some real performance diversion in 2015. it's not going to be as simple as just buying an index fund anymore. be careful there. >> meaning the best of the best are going to perform significantly better than the worst of the worst. you're just going to see -- >> areas of the market that will be losers in 2015 just like in the second half of 2014. let's not forget, small stocks were negative territory at the end of 2014. matt: the point is you want to be in the market. >> exactly. dierdre: be careful what you're picking. >> bonds will probably
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underperform. be aware, there will be performance diversions. it won't be as simple as buy the s&p 500. dierdre: a little more insight in that. in addition to letting you know what the average american is worried about, you know what you're particularly worried about, but the new top concern nationally is not what it was last year, a hint for 2015, what is going on in the nation's capitol, regulatory environment, key term there. we're back in just two minutes. ♪
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dierdre: just in today, the obama administration imposes newer and stronger sanctions against the north korean government. officials are describing it as a response to the computer hack on sony pictures. rich edson is in washington, dc, with all the latest details. rich. >> good evening, dierdre. through the sanctions, the united states is prohibiting ten north korean officials and three entities from business with us companies or the financial system. a senior administration official says the attack against sony has crossed a line. officials acknowledge the sanctioned north koreans may not have been directly involved in the cyber attack with sony. though officials said they targeted these sanctions to bring the greatest effect to the
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korean government. josh earnest hints the us will continue their retaliation. our response to sony will be proportional and will take place in a time and manner of our choosing. today's actions are the first aspect of our response. senior officials say they're not sure if any of the individuals they've sanctioned have assets in the united states. cyber attacks are becoming more damaging and sophisticated. and that the government is working with the private sector to address these attacks. back to you. dierdre: thanks very much. rich edson with us in d.c. americans aren't too happy with the work ethic in d.c. the number one concern for americans last year is how the government functioned. it's the first time that government satisfaction topped the list. concerns about economic growth came in second. followed by unemployment and health care. first time since 2007
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worth noting that the economy wasn't the top concern. clint, what does it say that we've seen since 2007, first time, i'm not even worried about the economy, i'm more worried about how the government functions? >> people are worried about the economy through the government. the government has messed things up for so many sectors. they've messed up health care and the economy. every bit of regulation that comes out is so misplaced. you have a lot of uncertainty. dierdre: is it a question of the volume of regulation or is it a quality problem? >> i would argue both because i think generally we do a bad job of both. the uncertainty that's out there, every bit that comes out confuses the previous moras that's out there and makes it worse. dierdre: as far as dodd-frank, you spent a lot of time in the banking system. a lot of banking execs say, i don't mind following the regulation, i don't know what they are. >> uncertainty is the most important. if you don't know the rules. you don't know how to implement them.
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then you can't build your business around them. it's hitting players in an unequal manner. the largest players can afford, you know, to build the type of infrastructure to deal with the greatest regulation -- regulatory changes we've seen probably since -- dierdre: if you can't afford a lawyer for 2,000 bucks an hour, you're out. >> smaller firms are feeling this pain to keep up. obamacare, for example, the cost of health care went up dramatically in anticipation of the law. and that one -- once it was established, we were able to adjust our business and make it work. again, we'll hire because our business is working. during that uncertain period, makes it difficult. matt: i, still, you know, the economy is the number one issue. for a while, americans thought the economy is just bad. now they realized the government has tried to fix it. now they're blaming more the government than the economy as a whole. those top three are 50%, that's all the economy. unemployment as well.
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that's not a good sign of americans that they're that concerned. and being 70% of the gdp as a consumer, that's scary. because if you don't feel good, you're not spending money. >> i think that unemployment dropping lower on the list makes a whole lot of sense being that unemployment as improved. it's natural that less people are concerned about it. not surprised. dierdre: going from 7% to 5.8%. >> good thing. we can argue about shadow statistics and everything else. that's a good thing. with health care, forget what you personally feel about obamacare, two of the top performing sectors have been health care and insurance. i understand that. i'm saying, from a stock picker's point of view -- not exactly horrible. this function in government is the big question to ask there is: what is it specifically that government could be doing differently, given the environment that we're? and unfortunately, there, the answer is not a whole lot.
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both sides are so polarized. what does that tell me as an investor, as a portfolio manager? it means stay the course because large companies will be able to continue to weather the storm and do well. matt: that's from the standpoint -- i can't disagree with you. my health insurance went up 50% because of obamacare. that hurts. that hurts me hiring new people. that hurts a lot of small businessesaround. small businesses around. >> the insurers on that. oxford started raising rates 18% a year way before obamacare. dierdre: they were front running. >> in that potential anticipation of higher rates. dierdre: new year, new laws. in california, there are more than 900 new laws, including one that allows undocumented immigrants to apply for driver's license. this summer, there will be a statewide ban on
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plastic bags and mandatory kill switch on smart phones. also, a new dog, that is to say a new law for dogs. folks in the golden state can go to dinner with their dogs. only restaurants with patios. matt, guess what we're getting you. so what do you make of it? california is a big part of our country. does this strike you as important from an investor's point of view. >> my only observation, but the dog one interesting enough, it's pro business. let's a business focus on a target audience. three 40s oit costs businesses e money. >> it allows military spouses licensed out of state carry their license to california when they're deployed there. great for them. >> one that bothers me.
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the states film and television industry. the tax credits were set 330 millions dollars a year because they're fighting -- dierdre: or vancouver. there's a lot of production companies that just say, california is too expensive. go north. >> you can't have these actors come out and bash people when they see where does this money come from. it goes into their pocket so they can make more money. >> that was my opinion. it's going to cost more money. it will cost taxpayers more money. >> most regulations at this point. we're in an advanced society with a strong set of rules and laws on the book already. anything added now is superfluous. i don't have any issue with getting rid of plastic bags. that's fine. i have no idea what the impact of that -- >> what about the bag company -- >> california is becoming a difficult state to operate a small business in. that's why they're losing businesses to some of their neighbors. i'm not sure if these changes will turn that. >> i suspect they won't.
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dierdre: you own a few restaurants, don't you? >> i do. dierdre: are you allowed to let people have their dogs. >> we have a patio space. we won't do that today. i would embrace that change. because there is a huge audience that would very much like to dine with their pet. and i think they would be willing to pay premiums. the story in california, they're devising a menu. while you're eating, your dog can have special stuff. dierdre: this is a 16 billion-dollar market in america. >> i can't wait to have a beer and burger and a slobber on my shoe. who wants that. >> you can go inside or go to another restaurant. if i felt my restaurant was better suited -- dierdre: we'll pull together and get matt a holiday gift that the box will move. >> getting rid of smoking in the bars.
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dierdre: everyone went bananas. >> nothing happened. bars are still opened. dierdre: as it turns out, bars are still opened. secrets of the rich and famous. short list of how the wealthy hold on to their money. how to save like the rich, next. ♪
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>> lessons on saving as the top 1% do.
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you may be surprised to hear where the rich keep their money. but you can do the same. we're back in just a minute. to help you make more money.
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announcer: and now, it's time for upon further review. dierdre: we've talked a lot about the american dream on the show. one of those dreams, living in and owning a nice house. so the top 1% of americans, those who have seven and a half million dollars own at least one lavish place. but it's worth noting, only a small portion of their money is tied up into their home. the super rich spend about 9% of their wealth on homes. nearly half of their assets are spent on businesses and other kinds of investments such as real estate. 20% of their money is set aside for financial security. so the picture completely different for the middle class. nearly two-thirds of their wealth is tied up in their primary residence. only 9% is spent on business equity and real
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estate. aubrey, i want to bring you in this first. what do you make of these stats? how can we save more. >> obviously, someone who is wealthy is able to put less towards housing. that makes sense. the biggest difference is also just the way people look at money. the wealthier people tend to look for assets that will appreciate in price and tend to shun assets that are going to depreciate. so they don't go out and buy a new car every two or three years. or lease a car every three years. they tend to be more conservative. dierdre: they'll be more patient. they don't need to be liquid. so they can lock something up for ten years. >> i love a new car as much as the next person. that's a rapidly depreciating asset. it's worth 20% less than you paid for it when you drive it off the lot. rich people are okay with a seven or 8-year-old car. i'll drive in and commute from connecticut or long island or wherever they are. asand the problem is, the
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middle class, many try to keep up with the joneses. they want to keep the bmw for no money down at 500 bucks a month. they end up in that rut. it's continuous. matt: the housing number can be deceiving. obviously you won't buy a 12 million home. what i found, business equity as well as financial security. investing in a second home or stock market. 70% in the top 1%, 12% in the middle class. they're spending that money on things they don't need. disposable money is going into a nicer car instead of the future. >> the housing boom in part by keeping up with the joneses, did people stretch too much in their homes. of course, they did. the american dream of owning a home, it wasn't owning a four bedroom two car garage home. when the collapse happened, we see this
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disparatey between the uber wealthy. the housing market has come back. we're seeing this huge gap. >> the other part is that wealthier people tend to be much more patient. dierdre: they can afford to be patient. >> they don't debate, should i sell because there's a 10% correction coming up. they don't think about it. dierdre: i have to beg to differ. they keep up with the joneses as well. i know many millionaires who are out spending in the hamptons. >> you can keep up when you have a lot of money. the wealthy people spend money on things that build assets. dierdre: whole different strategy. 2014 a record year for ipos. did make a lot of people very rich. shake shack announcement that will go public. another sign investors are looking forward to. our views on whether that investment is right for you or if you're better off just buying a burger. that's next. more on "making money." ♪
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dierdre: popular new york burger chain shake shack recently filing for a 100 million ipo. in the last four years, the company has grown from seven the locations 62 worldwide. jim, i'll start with you because i know you have a restaurant business or two under your name. what do you think? >> i think it's very exciting. it's exciting for shake shack, for danny meyers who is a best in class players. looking at the initial numbers, it seems it's coming out what might be deemed to be expensive. they're comparing it to chipotle and other types of fast foods. casual chains that are upscale. sixty-two stores.
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barely scratching the surface. there's a demand for the better burger. and what he can do -- dierdre: beef is all high quality. everything is high quality. >> he can do an awful lot. i wouldn't want to bet against him. it will be an exciting thing to see. matt: you need to realize, you know, people look at the growth they have here on the island in manhattan. the growth is amazing. always a line. you won't have the same growth and same type of margins once you get middle of america. chipotle has a lot more stores. there is opportunity for more. >> every time i drive by it. the parking lot is full across the street. and the place is full. in the summer it's full. a lot of expansion. it is a good burger. dierdre: every single chef, and granted they're not going to let everyone talk to me that's disgruntled. every chef that works with him loves him. >> that's encouraging.
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>> sixty-two versus having 2,000 or the mcdonald's level. it's hard to scale that up. not to say they can't do it. pretty pricey ipo, i think. >> pricey, but he created a unique brand already. arming him with $100 million to help grow it, i think it will be an exciting story to watch. matt: it's an international story. it could work. some bumps, but it definitely will work. dierdre: it's now valued at a billion dollars, just that property alone. well, a 2 billion-dollar valuation in just two years, same day grocery service start up inis it a cart has eager people inspired. we have a great story coming picupcoming up. ♪ these ally bank ira cds really do sound like a sure thing,
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so ally bank really has no hidden fethat's right. accounts? it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates. >> this summer calling the uber of grocery delivery landed 220 million dollars in investments, similar to amazon and fresh direct, instacart allows customers to order online, deliver to the door. like uber, it hires local shoppers to fill and deliver the orders. customers can then rate their experiences and starting with you, have you this in austin, texas? >> we do, so many kids doing this as a part-time job. they will pick up groceries for a total stranger, come back, and get paid and go back to
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work. >> they are doing it because it's worth their time? >> experience, it's a fun economy. like the uber drivers who sign up for it. >> i certainly like it, and they're recognized by market players as being valuable. i get a concern on the social side of the business, who's buying my groceries and what's my confidence, and when something goes wrong, what is the recourse? i know people have stopped using uber for a variety of reasons. i think it's great. i love that they're creating jobs. i worry about the credibility or maybe the ability to execute consistently. >> i love this from every aspect, as a consumer, pay a premium to have groceries there within an hour. i wanted ice cream, i was too lazy to walk across the street. >> that's like urban fetch. if you get a $5 pint of ben & jerry's. >> keeps money in the community. you're paying somebody local, money is going to the local store.
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they say making upwards of $25 an hour. >> what about competing amazon has the prime pantry. $100 volume worth of goods, $5, $6, fresh direct, almost every grocery store in new york city doll it. >> you have to plan two days in advance for food to come. especially like this. >> i think it will work, it's got to be unique to cities. you're limited in expansion so you want to be careful there and think it through, as jimmy pointed out, if something goes bad in the cities, the repercussions are devastating for a city like that. >> what we're craving and when we're craving it. i think it is an exciting business, my only concern is --. >> would you want to see metrics, you have to order $50 worth of goods or we're not calling somebody. >> i don't want to be the scrooge over the grinch, i want to see institutionalization on
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it. what happens when something goes wrong, how do they fix it? with amazon, the corporate side of it is so efficient they get -- >> and google is sort of trying this out in a couple cities, san francisco is one of them. >> how much do they charge to pay $25 a person. >> salute to american success is american born moon shine, american made line of spirits who celebrates to pioneers during the early days. this nashville company is the brain child of former notre dame quarterback patrick jilling ham and retired u.s. marine corps captain. this product sells in 11 states. we salute you guys, like the pioneers, you are honored with the companies. for more on american success stories and others like it go to foxbusiness.com/charles payne where you can find more
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stories. >> stay away from the apple pie moon shine. >> great advice. thank you all, charles is back on monday. hopefully can you join him then and every night at 6:00 p.m. eastern time. in the meantime, have a great weekend everyone. >> good evening, everybody, i'm cheryl casone in for lou dobbs tonight. the obama administration finally retaliating against north korea for hack attack against sony pictures possibly the costliest cyberattack ever on an american company. the white house slapping new economic sanctions on pyongyang's arms industry and intelligence operations. reaction from general jack keane whether sanctions are the right move. protesters taking to the streets from the east to west coast marching against brutal police tactics and a lack of accountability. the

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